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THE INCLUSION OF Mitsui Mining & Smelting Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,ENDORSEMENT OR PROMOTION OF Mitsui Mining & Smelting Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES.THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ANDLOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

1-11-1 Osaki, Shinagawa-ku, Tokyo141-8584, JapanTelephone 81-3-5437-8028Facsimile 81-3-5437-8029e-mail [email protected] https://www.mitsui-kinzoku.co.jp/

MITSUI MINING & SMELTING CO., LTD.CSR Office

Mitsui Kinzoku Group publishes a CSR Report every year to give

stakeholders a better understanding of our approach and activities

related to our corporate social responsibility (CSR), for creating a

sustainable society.

This report mainly explains the progress of materiality issues in our

CSR activities in the previous fiscal year.

July 2018

Previous publication: July 2017, Next scheduled: July 2019

This report focuses on figures for fiscal 2017 (April 2017 – March

2018). It also contains details of initiatives prior to that period, and

initiatives that are underway for fiscal 2018 and beyond.

This report covers Mitsui Kinzoku (non consolidated), as well as

consolidated domestic/overseas affiliates. We started gathering

data related to CSR for Mitsui Kinzoku Group in fiscal 2016,

including areas such as the environment and personnel. Figures

whose accuracy cannot be verified sufficiently have been omitted

from this year’s report. Notes are included to indicate the scope of

individual sets of data.

This report has been compiled with reference to ISO 26000 and the

Environmental Reporting Guidelines (Ministry of the Environment,

2012 version).

Basic policies, promotion systems, major indicators and specific

measures are stated according to the disclosure requirements of

the GRI Standards.

We will continue the publication of the CSR Report, in addition to

CSR activities, with the aim of disclosing as much information in this

report as possible to facilitate further dialogue with all of our

stakeholders.

In addition to facts about Mitsui Kinzoku Group past and present, this reportcontains decisions, plans and other forward looking statements based on informationavailable at the time of writing. Please bear in mind that social situations in the future,and the actual results of our business activities, may vary from the forward lookingstatements contained herein.Figures in tables and graphs are rounded and may differ from total values.

04 MITSUI KINZOKU CSR REPORT 2018

CONTENTSMITSUI KINZOKU

Putting our Management Philosophy into practiceOur approach to CSR

Mitsui Kinzoku Group’s CSRFor social sustainability and our own sustainable development growth

CSR promotion

Progress of Material IssuesMateriality in CSR Activities

Co-creation in the market for new engineered materialMateriality in CSR Activities Engineered Materials Sector

Recycle-smelting ～Implementing materials stewardship ～Materiality in CSR Activities Metals Sector

Continuous supply contributing to sustainable mobilityMateriality in CSR Activities Automotive Parts & Components Mitsui Kinzoku ACT Corporation

Corporate governance

Highest priority on compliance

Respect for Human Rights Addressing the Issue of Conflict Minerals

Human resource development

Diversity promotion

Improving Health Management

Commitment to worksite safety

Evolving corporate sustainability leads to solving globalenvironmental and social issues

My commitment

Environmental Management

Reducing our energy use and GHG emissions

Environmental preservation in mining

Responsible supply chain

Intellectual Property Management

Quality assurance from the customer's perspective

Contributing to communities

MITSUI KINZOKU CSR REPORT 2018 0504 MITSUI KINZOKU CSR REPORT 2018 05MITSUI KINZOKU CSR REPORT 2018

President, Representative Director

Keiji Nishida Profile

My commitment

Evolving corporate sustainability leads to solving globalenvironmental and social issues

06 MITSUI KINZOKU CSR REPORT 2018 MITSUI KINZOKU CSR REPORT 2018 0706 MITSUI KINZOKU CSR REPORT 2018 07MITSUI KINZOKU CSR REPORT 2018

Putting our Management Philosophy into practiceOur approach to CSR

ourManagement Philosophy

Corporate Slogan

Code of Conduct

Mitsui Kinzoku’s Basic CSR Policy


マテリアルの知恵を活かすCorporate Slogan

MITSUI KINZOKU CSR REPORT 2018 09

Taking full advantage of Material Intelligence

Code of Conduct

9. Demonstration of Leadership by Senior Management

1. Our Social Mission

2. Self-Awareness and Social Responsibility as a Member of our Corporate Group

3. Compliance

4. Fair Business Activities

5. Rejection of Antisocial Forces

6. Proactive Information Disclosure and Comprehensive Information Management

7. Contribution to the Natural Environment

8. Provision of Comfortable Work Environment

With creativity and productivity,

We, Mitsui Kinzoku Group, will explore products of value to society,

and seek an eternal growth of our group.

Management Philosophy

08 MITSUI KINZOKU CSR REPORT 2018 09MITSUI KINZOKU CSR REPORT 2018

Mitsui Kinzoku Group’s CSRFor social sustainability and our own sustainable development growth



Foundation of sustainability

CSV

Foundation of the business


Progress of Material IssuesMateriality in CSR Activities


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20 MITSUI KINZOKU CSR REPORT 2018 MITSUI KINZOKU CSR REPORT 2018 21

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Takeshi Nou

Co-creation in the market for new engineered material

Materiality in CSR Activities

Engineered Materials Sector

Utilizing our core technologies, know-how and sales channels, we transform into a Market Co-creation business entity which works with market participants to create a succession of new products using our “Material Intelligence."


Market Co-Creation Activity Index

0

50

100

150

200

250

2018Target

2015Result

2016Result

2017Target and

Result

100

175200

225

Establishment of mass-production technology for next-generationcircuit materials through collaboration

Utilization of microwaves to develop new engineered materials

Co-creation with a venture company with film-formation solutions

［ Plan of Execution ］

225

Change to a “Market Co-creation business entity”

Customers

［Core technologies］

［Know-how］

［Sales channels］

“Materialize new products”

“Creation of new market”


Director, Senior Executive Officer, Metals Sector

Isshi Hisaoka

Recycle-smelting Implementing materials stewardship


Metals Sector

The strength of the Metals Sector is that it has accumulated smelting technologiesand has multiple smelters.Through a shift in approach from the optimization of individual sites to total optimizationthrough the enhancement of cross-site functions, we have further increased our business value.


［ Plan of Execution ］ Expansion of recycle-smelting

Total amount of raw materials in FY 2015 = 100

Raw materials for recycle zinc, lead, precious metalsZinc concentrate, lead concentrate, etc.

2018Target andexpectation

2015Result

2016Target and

Result

2017Target and

Result

100104

110 113

Using ores extracted from the ground, we refine and manufacture useful non-ferrous metals such as zinc, lead, copper, goldand silver. It is the smelting technology which lies at the core of the technologies of Mitsui Kinzoku fostered for more than acentury. Besides cultivating and accumulating technical expertise, we have also gained experience of operating smelters formany years in six locations in Japan.Leveraging our strengths in the metals business both in terms of “soft” knowhow and “hard” facilities, we expand the scopeof our operations including complex ores and recycled raw materials which were previously difficult to process. We are alsoworking to expand our processing capacity and building a smelter network by organically connecting each of our smelters forthe business shift to be capable of sustainable growth.

Network of our smelters and refineriesRaw materials for recycling that can be handled at each smelter are shown in blue.

Hachinohe city, Aomori

Shimonoseki City, Yamaguchi

Omuta City, Fukuoka

Ichikikushikino City, Kagoshima

Hida city, Gifu

Takehara City, Hiroshima

Our nonferrous and precious metals recycling operations


Hiroshi Igata

Continuous supply contributing to sustainable mobility


Automotive Parts & Components

Leverage our “Manufacturing Intelligence” and provide continuously “Safety,” “Comfort” and“Amazing Performance.”The strengthening of the quality assurance structure and the development of next-generationproducts are one of the processes for that purpose. Contributing to the sustainability of theautomotive industry has led to the building of a resilient society.


［ Plan of Execution ］

Award for Effort to Deliver Zero Defective Products

2017 Excellent Delivery Compliance Award

2017 DONGFENG RENAULT EXCELLENT

2017 Excellent Supplier Award

2017 Excellent Supplier Award

Quality Award

Quality Award QD Certificate of Achievement

［］

Development of next-generation products (weight reduction)We are working to meet the needs of vehicle users and customers (global OEM) for fuel-saving and weight reduction.

Weight of existing products = 1.0

Side Door Latch Back Door Latch

Weight of existing products = 1.0

Customer awards for our manufacturing sites Excerpts from the results in FY 2017



CSR promotion

National and regional borders do not exist in CSR activities. We aim to entrench CSR activities as an initiative of individual employees both in Japan and globally.

I understood it well

I understood it

Neither yes nor no

It was a little hard to understand

It was very hard to understand

N 236

I don’t think they will

I think they willmake progress

I don’t know

N 237


Corporate governance

Corporate governance provides the foundation of corporate management and sustainability. Mitsui Kinzoku Group has developed the Corporate Governance Guidelines to support swift and decisive decisions based on the commitment to ensure transparency and fairness in decision-making. The Group’s efforts are based on these Guidelines.

30 MITSUI KINZOKU CSR REPORT 2018 MITSUI KINZOKU CSR REPORT 2018 31

General Meeting of Shareholders

Business Execution

CSR Committee Hotline Management CommitteeExport Screening CommitteeSupreme Safety and EnvironmentalMeeting

Internal Audit Dept.

Corporate Governance System of Mitsui Kinzoku

Business Units AffiliatesCorporate

Election/Dismissal Election/Dismissal Election/Dismissal

Outside Directors External Accounting Auditor

Board ofCorporate Auditors

Financial AuditAudit Cooperation

AuditBoard of Directors

Involvement/Participation

Nomination Review CommitteeCompensation Committee

Election/Dismissal/Supervision

Internal Audit CommitteePresident

Executive Council

Executive Officers

Audit

Cooperation

Survey/Instruction

Audit

Cooperation


Highest priority on compliance

Compliance is about observing not only laws and regulations but also social norms and ethics. It means following all the rules. We understand “all the rules” to include not only the national laws of different countries and our own internal corporate regulations but also all the conventions that society expects Mitsui Kinzoku to observe, including common sense and moral practices, even if they are not stipulated in written form.


Respect for Human Rights

Respect for human rights is an indispensable basis for business operations.We pursue human rights initiatives in accordance with the Mitsui Kinzoku Group Human Rights Policy


Human resource is one of the most important property for corporate sustainable growth. In order to create new corporate value, we work for developing human resources, which makes use of the individual capabilities to succeed worldwide or in local communities.

Human resource development

Training System

Staff Training for new employees

Follow-up for the 2nd year

Chiefs Follow-up for the 3rd year

General officers Training for General officers

Subsection chiefs Training for subsection chiefs

Section managers Training for section managers

General managers Training for general managers

Officers Officer training

Midterm follow-up

Follow-up at the end of the 1st

For future Managem

ent

Basic skills training

Coaching skill training

Specialized skills training

Managem

ent skills training

Social skills training

Skills training for each business

Correspondence course support

Rank-based training Training for future section managers Manufacturing Self-development support To external facilitiesS

upport for acquiring qualifications

TOE

IC test support

Dispatch for external research institutes

External training


training for selected employees

Training for subsection chiefs with national staffs.

Total training hours (FY 2017)


Employee within 3 years after joined Mitsui Kinzoku

Officers

Managers

Mid-level employees

New employees


Diversity promotion

Diversity is the source of corporate innovation. We are creating a corporate culture that allows active participation of diverse human resources.


2015 2016 2017 Fisca

Proportion of female employees in management positions

2015 2016 2017 Fisca

Proportion of woman as a percentage of new hires

0.0

10.0

20.0

30.0

40.0

50.0

0.0

2.0

4.0

6.0

8.0

10.0

2015 2016 2017 Fiscal

Proportion of women as a percentageof total employees

Mitsui Kinzoku

Mitsui Kinzoku consolidated

Mitsui Kinzoku


Mitsui Kinzoku


14.8%

22.2%

35.4%40.0%

1.1%1.3%

7.8% 7.6%

8.3% 8.5%

30.4% 30.7%

10.0%

31.1%

1.0%

7.8%

15.8%

40.1%


1.7

1.8

1.9

2.0

2.1

2015 2016 2017 Fiscal

Percentage of employees with disabilitiesMitsui Kinzoku, Non-consolidated

1.83%

2.04%2.01%

Percentage of re-employed after retirementDomestic consolidated FY 2017

7990


Employees whose parental leave ended

Employeeswho returnedto work after ended

Employeeswho separated from employ-ment

FY2014

Mitsui Kinzoku

Domestic total

Parental leave

Employees that took advantage: Employees that took parental leave in the relevant fiscal year of those entitled.

Return to work and retention rates after parental leave

Ended: Employees whose parental leave ended.Returned: Employees that returned to work after ended. Retired Employees that separated from employment in twelve months after returning.

31,24146,108

71,056107,700

Rate of taking paid leave

0.0

5.0

10.0

15.0

20.0

2015 2016 2017 Fiscal

Mitsui Kinzoku

Domestic total

Overtime hours

16.715.9

11.012.4

Hours/month per employee

15.2

13.8


Employees that entitled to leave

Employees that took advantage





Mitsui Kinzoku

Domestic total

Ended Returned Retired

FY 2015 FY 2017FY 2016

FY 2015 FY 2017FY 2016Ended Returned Retired Ended Returned Retired


Improving Health Management

Percentage of high stress

Average of listed manufacturing companies in Japan

14.0%

Results of Stress Check in FY 2017


“Improvement of productivity” is an important management issue. It is essential that employees are healthy. And the right to work healthily that everyone has must be protected.

Target : Directly hired employees of Mitsui Kinzoku and the domestic consolidated affiliates, including expatriate worker


Domestic operation sites with OHSAS18001 Certification

Mitsui KinzokuMaterials Analysis & Exploration CenterCatalysts Division, Ageo OperationCatalysts Division, Kamioka PlantEngineered Powders Division, Miike Rare Metal PlantEngineered Powders Division, Hibi Magnetic Materials PlantTakehara RefineryCopper Foil Division, Ageo OperationPVD Materials Division, Omuta PlantCeramics Division, Omuta PlantPerlite Division, Kitakata QuarryPerlite Division, Kitakata PlantPerlite Division, Mikata QuarryPerlite Division, Osaka Plant

Domestic affiliatesNihon Kessho Kogaku Co., Ltd.Powdertech Co., Ltd.Nippon Yttrium Co., Ltd.Kamioka Mining and Smelting Co., Ltd.Hachinohe Smelting Co., Ltd.Hikoshima Smelting Co., Ltd.Miike Smelting Co., Ltd.Mitsui Kushikino Mines Co., Ltd.Mitsui Kinzoku ACT CorporationMitsui Grinding Wheel Co., Ltd.Mitsui Kinzoku Die-Casting Technology Co., Ltd.Kamioka Components Co., Ltd.Kyusyu Precision Equipment and Components Co., Ltd.Nihon Mesalite Industry Co., Ltd.Mitsui Kinzoku Instrumentations Technology CorporationMitani Rolled Copper Co., Ltd.Mitsui Sumitomo Metal Mining Brass & Copper Co., Ltd.

Yoshinogawa Electric Wire & Cable Co., Ltd.MESCO, Inc.

Mitsui Kinzoku Group holds that industrial safety and health is essential for business continuity.We provide a safe worksite environment not only for our employees but also cooperative companies, contractors, and visitors to plants.

Commitment to worksite safety

SiteHikoshima Smelting Co., Ltd.Takehara Refinery Ageo training centerKamioka Mining and Smelting Co., Ltd.Miike Office

Participants

Industrial Safety and Health Act Seminar (FY 2017)


President’s focused guidelines on health and safety for 2018

1. Give priority to advancing the intrinsic safety ofequipment and the equipment measures in line with theconcept of risk assessment.

2. Continue the full enforcement of safety complianceactivities to eradicate accidents that result from a violationof rules.

3. Increase the level of sensitivity to danger of all peopleworking for the Mitsui KinzokuGroup by reminding them of its importance.

In light of the guidelines above, each business sector willprepare and execute basic safety and health targets basedon their situations to achieve no accidents.

The policies are based on the analysis of the accidents occurringbetween January and September 2017, and enacted in October.


Basic Policy on Health and Safety

［Principle］Based on the recognition that ensuring the health and safety of all people working for the Mitsui Kinzoku Groupis the most important element for conducting business activities, we will establish a comfortable workenvironment.

［Policies］1.

2.

3.

4.5.

6.

7.

These policies apply to all the directors, officers and employees of Mitsui Kinzoku and its Group companies.

We will make efforts to improve the level of health and safety management by complying with the provisionsof the Industrial Safety and Health Act and establishing any necessary self-standards.We will improve the organizations and systems at each location and company of the Mitsui Kinzoku Groupfor the promotion of health and safety activities.We will identify and assess the risks or harmful factors in all areas of our business activities and make effortsto eliminate or minimize them.We will make efforts to introduce new methods and technologies to improve health and safety.Based on the recognition that ensuring health and safety will be realized with good communication, we aimto communicate with all people working for the Mitsui Kinzoku Group.We will strive to continuously improve the health and safety management system by regularly undergoing anaudit.We will remind all people working for the Mitsui Kinzoku Group of the importance of ensuring health andsafety and increase their awareness through education and activities to raise awareness, etc. about this.


Photos: Safety audit in Mitsui Kushikino Mines Co., Ltd.


Number of casualtiesby industrial injuries

Total actual working hours Frequency rate

Total number of working days lost

Total actual working hours Severity rate

Trends in the number of accidents in domestic sites

Trends in the number of accidents in overseas sitesAccidents that have occurred in cooperative companies and contractors.

Accidents that have occurred in cooperative companies and contractors

0

10

20

30

2013 2015 2016 20172014

0

10

20

30

2013 2015 2016 20172014

6

25

13

22

14

10

22 23

9

21

15

11

7

12 11 11

Frequency rate of accidents

Severity rate of accidents

12

27

13 13

0.00

0.50

1.00

1.50

2.00

2.50

2015 2016 2017

1.39

1.14

1.53

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

2015 2016 2017

0.01 0.027

0.034


We are striving to conserve the global environmentwhile producing useful materials that will contribute to sustainable development in society. Continuing to achieve such a balance is one of the important management issuesof Mitsui Kinzoku Group

Environmental Management


Operating sites with ISO14001 certification

[Mitsui Kinzoku]Catalysts Division, Ageo OperationCatalysts Division, Kamioka PlantEngineered Powders Division, Miike Rare Metal PlantEngineered Powders Division, Hibi Magnetic Materials PlantTakehara RefineryCopper Foil Division, Ageo OperationPVD Materials Division, Omuta PlantCeramics Division, Omuta Plant

[Affiliates]Nihon Kessho Kogaku Co., Ltd.Mitsui Kinzoku Catalysts Zhuhai Co., Ltd.PT.MITSUI KINZOKU CATALYSTS JAKARTAMitsui Kinzoku Catalysts (Thailand) Co., Ltd.Mitsui Kinzoku Catalysts Vietnam Co., Ltd.Powdertech Co., Ltd.Nippon Yttrium Co., Ltd.Taiwan Copper Foil Co., Ltd.MITSUI COPPER FOIL (MALAYSIA) SDN.BHDOak-Mitsui Inc.Mitsui Copper Foil (Suzhou) Co., Ltd.Mitsui Electronic Materials Co., Ltd.Mitsui Kinzoku Korea Co., Ltd.Kamioka Mining and Smelting Co., Ltd.Hachinohe Smelting Co., Ltd.Hikoshima Smelting Co., Ltd.Miike Smelting Co., Ltd.Mitsui Kushikino Mines Co., Ltd.Public Nuisance & Medical Research Institute, IncShanghai Mitsui Xin Yun Precious and Rare Metal Recycle Co., Ltd.Compania Minera Santa Luisa S.A.Mitsui Kinzoku ACT CorporationGECOM Corp.MITSUI SIAM COMPONENTS CO., LTD.MITSUI COMPONENTS EUROPE LTD.Mitsui Components Guangdong Co., Ltd.MITSUI KINZOKU ACT MEXICANA, S.A. de C.V.Mitsui Kinzoku Trading Co., Ltd.Mitsui Grinding Wheel Co., Ltd.Mitsui Kinzoku Die-Casting Technology Co., Ltd.Kamioka Components Co., Ltd.Kyusyu Precision Equipment and Components Co., Ltd.Nihon Mesalite Industry Co., Ltd.Mitsui Kinzoku Instrumentations Technology CorporationMitsui Sumitomo Metal Mining Brass & Copper Co., Ltd.Yoshinogawa Electric Wire & Cable Co., Ltd.MESCO, Inc.MINDECO, Iwami mining stationOkuaizu Geothermal Co., Ltd. Nishiyama OfficeMitani Rolled Copper Co., Ltd.


Basic Environmental Policy［Principle］While recognizing the conservation of the global environment as one of the most important management issues,we will act with consideration for environmental conservation in all aspects of our business activities.

［Policies］

These policies apply to all the directors, officers and employees of Mitsui Kinzoku and its Group companies.

We will make efforts to prevent environmental contamination and reduce negative environmental impacts by complying with laws and regulations, assessing the impact of our business activities on the environment, including with regard to biodiversity, and setting necessary self-standards.We will improve the organization and system to promote the environmental preservation activities at each site and company of the Mitsui Kinzoku Group.We will strive to address climate change and reduce wastes and the emission of environmental pollutants by setting targets.As a commitment to sustainable use of natural resources and conservation of biodiversity, we will actively promote the introduction of environmentally-friendly technologies, materials, and the development of environmentally conscious products and solutions.We will continuously improve the environmental management system by regularly implementing an audit.We will raise awareness of all people working in the Mitsui Kinzoku Group by emphasizing the importance of environmental conservation through environmental education and awareness raising.


Environment-related laws workshops (FY 2017)

Person in charge of environmental

Environmental seminars in rank-based training (FY 2017)

3 participants have already completed the course by the end of the fiscal year.


INPUT OUTPUT

292,98095,381

287,984

633,82827,09911,186

912127,135

216,44070,136

5244

933,852127271

2,375103,580

198,952 t16.1%

428,583 t34.8%

605,004 t49.1%

Secondary raw materials

Primary raw materialsRecycledraw materials

Unused natural productssuch as ore

Unused products, parts, etc. manufactured or processed by another company

Used products that have become waste, by-products of another company, etc.

212,122 t16.1%

540,922 t41.0%

567,723 t43.0%

Secondary raw materials

Primary raw materialsRecycledraw materials


thousand m3

thousand tons thousand tons


Waste treatment outsourcing expenses

21.4%

Energy expenses

10.9%

Maintenance and repair expenses

10.7%

Others(Labor cost, office commodity expenses, etc.)

57.0%

Break down of environmental management expenses

FY 201749.2

100 million yen

15.7 18.1 19.3

28.2

35.6

52.7

35.1 33.9 35.3 36.6

43.2 42.3

0

20

40

60

2011 2012 2013 2014 2015 2016 2017 Fiscal

39.4

49.2

180

80.1 84.1 87.1

0

50

100

150

200

2000 2013 2014 2015 2016

Amount of waste generation in Japan(Thousand tons/year)

2017

99.1

Fiscal

115.6


Trends in environment-related capital expenditures and environmental management expensesHundred million yen

Environment-related capital expendituresEnvironmental management expenses

2,169 2,151

1,8281,978

422

172

615 550

0

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017 Fiscal

2,435

551

0 50 100 150

0 10,000 20,000 30,000 40,000 50,000

BOD load

COD load

Total wastewater

Sea water usage

Freshwater

91.8 t

50,329

29,882

20,706

128.2 t

60,000

21.6%

18.9%

53.6%

29,882

1.5% 4.3%

50,329 55.0%44.5%

0.1% 0.3%


0 500 1,000

Soot and dust

NOx emission

SOx emission

199.0 t

61.4 t

985.0 t

thousand m3 thousand m3

thousand m3thousand m3

thousand m3


220.5196.2 204.1 207.2 216.1

283.0283.3 288.0 274.0 279.5

0

100

200

300

400

500

600

2013 2014 2015 2016 2017

Total energy consumption volume in a crude oil equivalent

Covers only the sites of Mitsui Kinzoku and affiliates in Japan

479.5492.1

481.3495.6 503.5

We have been striving to save energy and reduce greenhouse gases at our production sites. We have set a new target of reducing CO2 emissions by 7% in the Group by FY 2030in conjunction with the rapid progress of countermeasures against climate change. We will take steady steps toward a sustainable low-carbon society.

Reducing our energy use and GHG emissions

647.6 690.0 688.8 722.0

582.8 584.4 545.0 615.3

CO2 emissions from energy consumption

0

200

400

600

800

1,000

1,200

1,400

1,600

2013 2014 2015 2016 2017 Fiscal

733.3

617.6

1,230.31,274.4

1,233.8

1,337.3 1,351.0


Fiscal

(thousand kL/year) (thousand tons-CO2/year)

Energy basic unit Energy consumption (crude oil equivalent) / ton-kilometer (t-km)


FY 20171,800.8

thousand tons-CO2

1,351.0 kt75.0%

405.6 kt22.5%

43.7 kt2.4%

0.5 kt0.03%

FY 20171,800.8

thousand tons-CO2

1,060.2 kt58.9%Metals

537.2 kt29.8%

Engineeredmaterials

145.9 kt8.1%

Affiliates coordination 57.3 kt3.2%

0.4 kt0.02%

Mitsui Kinzoku Head Office andadministrative departments

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

54.3%

11.4%

20.9%

17.4%

43.8%

45.7%

88.6%

79.1%

82.6%

56.2%

58.1%

12.8%

57.8%

34.1%

43.8%

41.9%

87.2%

42.2%

65.9%

56.2%

17,497 17,743 17,748

20,846

14,000

16,000

18,000

20,000

22,000 CO2 emissions in logistics

20,636

95%

96%

97%

98%

99%

100%

101%

2016 2017 Fiscal2014 20152013

98.9% 98.8%

99.7% 100.0%

Year-on-year comparison of transportation energy consumption rates

96.2%



486.1

415.6 399.3381.5

352.7

272.3

02011 2012 2013 2014 2015 2016 2017 Fiscal

100

200

300

400

500

600

Includes power consumed in house as well as power supplied to utilities.

Includes domestic sites as well as overseas sites which generate their own power.

Total power generation using renewable energy

236.7

Total Hydraulic Geothermal Photovoltaic


Hikoshima Smelting Co., Ltd. has started solarPV which outputs around 2 MW (megawatts)since March 2016. The generation capacity isexpected about 2,500,000 kWh annually whichis to be covered annual electricity consumptionfor about 670 households


Mining mineral ore, which is a natural resource, and changing it to non-ferrous metal materialsthat are useful for industries and society are activities that we have been conducting for many years. We understand that these activities will work outonly if we consider the environment and care about nature.

Environmental preservation in mining


Mines that are in operation and suspended in Japan

Mines in operation (including those partially operating)

Suspended mines

Iwaizumi Town,Iwate

Iwate Mine

Ichikikushikino City,Kagoshima

Kushikino Mine

Minami kyushu city,Kagoshima

Akeshi Mine

Ichikikushikino City,Kagoshima

Hashima Mine

Yuhsui Town, KagoshimaOhnoyama Mine

Izumo City, ShimaneUdo Mine

Ohda City, SimaneIwami mine

Hida City, GifuKamioka Mine

Ono City, FukuiNakatasu Mine



PAMA Programa de Adecuación y Manejo Ambienta(the Environmental Adjustment and Management Program)


from Chief Environmental and Safety Officer

We recognize that environmental conservation and occupational health and safety are essential to sustainability. Our constant efforts to make improvements in these areas also help fulfill the UN Sustainable Development Goals (SDGs).


Collaboration with our suppliers enables us to supply steadily high-quality products and services to our customers. Responsible and resilient supply chains create value for us and our customers by reducing supply chain risks and improving our performance.

Responsible supply chain


https://www.mitsui kinzoku.co.jp/wp content/uploads/supplychain_guideline_e.pdf

…

Hiroshi Igata

…

…

…


Mitsui Kinzoku Group Procurement Policy



Addressing the Issue of Conflict Minerals

With regard to the scope of responsible minerals sourcing, concerned minerals and risks have been expanded in recent years. Mitsui Kinzoku Group adopts the process in line with globally recognized frameworks to promote responsible minerals sourcing that takes into account social and environmental responsibility including compliance and human rights protection.


Intellectual property is an essential part of business activities.We respect intellectual property rights and promote to acquire and to use them.

Intellectual Property Management


Number of Japanese patent applications

Number of patents registered globally

Of which number of accelerated examinationsNumber of requests for examination

Usage of accelerated examination for patents in Japan

Percentage of accelerated examinations

0 50 100 150

2013

2014

2015

2016

2017

Number of foreign patent applications

0 100 200 300 400 500

2013

2014

2015

2016

2017

Mitsui Kinzoku Affiliate companies

0 100 200 300 400 500

2013

2014

2015

2016

2017

Mitsui Kinzoku Affiliate companies


Quality assurance from the customers' perspective

Mitsui Kinzoku Group ever more strongly recognizes that the responsibilityfor providing safe products and services of adequate quality is becoming increasingly larger as we expand our business domains and promote globalization, along with the broadening of customers into the electronics and automobile industries.

R&D CenterQA Office

DivisionsQA Dept.

Affiliated companiesQA Dept.

DivisionsQA Dept.



DivisionsQA Dept.


Quality management system

Quality Assurance Department

Number of operating sites with certifications

ISO9001 Japan

ISO9001 Overseas

ISO/TS16949IATF16949 Japan

ISO/TS16949 IATF16949 Overseas

0

10

20

30

2000 2005 2010 2015 2016

14

2728

7

20

28

810

11

3 6

910

1

2017Fiscal

28

11

10

11


Number of claims at sites that hold QA meetingsThe data is expressed as relative values, with the data of

FY 2013 being 100.

0

20

40

60

80

100

2015 20162013 2014

85.7

68.4

55.7

2017 Fiscal

48.7


Fundamental Quality Policy


Contributing to communities

We are committed to continue contributing to members of communities and society. We do what we can do, even little by little.

Research & Education

Environmental preservation

Culture & Tradition

Disaster Support

Infrastructure development

OthersResearch & Education

Environmental preservation

Culture & Tradition

DisasterSupport

Infrastructure development

Others

FY 2017

552FY 2017

181.3

Breakdown of the number Breakdown of the amount

The date covers of 58 sites and companies of Mitsui Kinzoku Group.

Welfare

Prevention of disasters and crimes

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

Welfare

Prevention ofdisasters and crimes


million yen

The first step as a “corporate citizen”


“I hope the children's safety, I only hope so”


It is our pleasure to give children an opportunity to learn something and become aware of something.


Corporate overview

441,046

473,274

450,553

436,330

25,743

31,835

11,137

38,461

503,825

538,646

484,800

518,981


Continuing to create growth products and businesses, centered around functional materials, metals and automotive parts, and continuing to enhance corporate value. That is our vision of we want to be in 10 years’ time.

519,215

49,529

522,418

Consolidated net sales (Millions of Yen)

Consolidated total assets (Millions of Yen)

Consolidated operating income (Millions of Yen)

Corporate profile

Company Name

MITSUI MINING & SMELTING CO.,LTD.

Common name MITSUI KINZOKU

Established

May 1, 1950

Head Office

1-11-1, Osaki, Shinagawa-ku, Tokyo, Japan

Paid-in capital

42,129million yen as of March 31, 2018

Sales

Consolidated 519,215 million yen

year ended March 31, 2018

Non-consolidated 260,719 million yen

year ended March 31, 2018

Employees

Consolidated 12,276 Non-consolidated 1,840

as of March 31, 2018

Subsidiaries and affiliates

Subsidiaries 74 include 53 consolidated

Affiliates 29

Consolidated operating income breakdown

Engineered materials

Metals

Automotive parts components

Affiliates coordination

value before consolidated adjustment

Functional materials for more comfortable lives in the information age

Battery materialsWe have been supplying a wide range of different batterymaterials for many years, and have continued to evolvehand in hand with battery technology. Materials includelithium manganese oxide and lithium nickel oxide, which areused in lithium ion batteries for mobile devices and electricvehicles, as well as hydrogen absorbing alloys, which areused in nickel hydride batteries for hybrid vehicles, and zincpowder, which is used in alkali batteries. There are highperformance materials underpinning the workings ofbatteries in almost every aspect of our everyday lives.We were the first in the world to develop mercury free zincpowder for batteries, and were among the first to startsupplying hydrogen absorbing alloys after mass productionof hybrid vehicles got underway.

CatalystsCatalysts are directly linked to reducing environmentalimpact. With motorization and the worldwide tightening ofregulations on emissions have led to a real need for reliablehigh performance catalysts. To cater to global demand, wehave an overseas network of supply facilities across sixcountries. We supply catalysts that offer outstanding heatresistance, low temperature activation and peel resistance,for motorcycles, cars and general purpose engines for a rangeof industrial machinery.

Engineered powdersThe technologies we have built up over many years,particularly in the field of non ferrous materials, have pavedthe way to create even more high added value products frommetal. Whether oxidizing metal, turning it into powder, orcoming up with all manner of other ideas, there are ways toachieve different functions from metal in bullion form. Byfocusing on these properties, and making the most ofpowder related technologies we have built up to date, interms of high purity, pulverization, and grain shape anddiameter, we have been able to develop and supply a wholehost of functional engineered powders.Our products include pastolan conductive powder forantistatic coatings, magnetite toner materials for printers andcopiers, cerium oxide abrasives for polishing glass for flatscreens and hard disks, tantalum and niobium oxides foroptical lenses and ceramic condensers, and tantalum andniobium carbides for cemented carbide tools.

Copper foilComputers, mobile phones and all other electronic devicescontain electronic circuit boards with precision wiringbetween IC chips. Electrodeposited copper foil provides theessential wiring material on printed circuit boards, used toform the circuit patterns.As electronic devices become more compact and lightweight,there is also growing demand for even more precisely

detailed circuit boards. As a leading manufacturer of copperfoil, we supply a wide range of products, from generalpurpose foils to state of the art products capable of formingultra precise circuits, and have the development capabilitiesto meet the needs of the market.One of our core products at the moment is anelectrodeposited copper foil with carrier, called MicroThin™.This is a product that combines the ultra thin propertiesrequired to form precise circuits (1.5 5μm) with an ultra finesurface coating. It has helped customers to improve processproductivity and yield, thanks to benefits such as the abilityto ship foil in wide rolls. Sales have been increasing steadilyever since we commenced mass production. As smartphonesacquire ever more advanced functionality, the substratesinside are expected to require increasingly precise wiring too.That is why demand for MicroThin™ is expected to keep ongrowing in the future.

Sputtering targetsLCD televisions, smart phones, tablets and other electronicdevices are made from circuits consisting of multiple layers ofthin films. The technique used to form these thin films, whichare just a few micrometers (μm) thick, is called sputtering.The base materials used in this process are sputtering targets.We supply target materials for a variety of purposes,including ITO transparent conducting films for LCD panels,organic EL panels and touch panels, IGZO transparent oxidesemiconductors, and thin film solar cells. Recently, we havealso started producing target materials for rotary cathodes,which improve process efficiency for our customers. Withmanufacturing facilities in Japan, Taiwan and South Korea,we continue to maintain a strong share of the target materialmarket for displays in particular.

CeramicsOur ceramics division manufactures firing furnaces, which areessential to the production of electronic ceramics, liningbricks, kiln tools, and bricks for non ferrous metal meltingfurnaces. Products also include Metalofilter, which removesimpurities from molten aluminum. Having been highlyacclaimed throughout the global market for its excellentfiltration capabilities, this has made a difference to theproduction of aluminum drinks cans the world over.

Transforming our business to create a recycling-oriented society

Non-ferrous metalsMitsui Kinzoku is Japan’s leading manufacturer of zinc, abasic material that is used across a wide range of sectors,including essential plating for rust proofing steel, alloys,chemical products and die cast products. It is also where ourroots as a business lie. Having built up zinc smeltingtechnologies and a supply structure over more than a century,we have earned a high level of trust from the market.


Battery-use zinc powder

Hydrogen storage alloy

Lithium manganese oxide (LMO)

Automotive catalysts

Motorcycle catalysts

Conductive oxide tin-/zinc-based

Magnetite

Cerium oxide abrasive

Tantalum / Niobium (Oxide/Carbide)

Electrolytic copper powder

Atomized powder

Solder powder

Fine powder

Electro-deposited copper foil

MicroThinTM Copper foil with carrier film

Resin coated copper foil

Thin embedded capacitor materials

Sputtering targets

Alumina/SiC refractories

Fine ceramics

Filtering equipment for molten aluminum

Carriers for electrophotography

Ferrite powder

Iron powders

Oxygen absorber

Single crystals for optics

X-ray Detectors

Photodiodes

Engineered Materials Sector

Metals Sector

Battery Materials Division

Catalysts Division

Engineered Powders Division

Nihon Kessho Kogaku Co.,Ltd.

Powdertech Co.,Ltd.

Copper Foil Division

PVD Materials Division

Ceramics Division

Metals & Recycling Division

Mineral Resources Division

Copper Business Strategic Div.

Side door latch

Back door latch

Slide door latch system

Mitsui Kinzoku ACT Corp.

Zinc (electrolytic/reflux refined/distilled

Zinc base alloys

Electrolytic lead

Tin

Bismuth

Antimony trioxide

Refined copper

Gold

Silver

Sulfuric acid Traded by Pan Pacific Copper Co., ltd.


Corporate overview

Affiliates Coordination Perlite Division

Mitsui Grinding Wheel Co.,Ltd.

Mitsui Kinzoku Die-CastingTechnology Co., Ltd.

Kamioka Components Co.,Ltd.

Kyusyu Precision Equipmentand Components Co.,Ltd.

Nihon Mesalite Industry Co.,Ltd.

Mitsui Kinzoku InstrumentationsTechnology Corporation

Mitsui Sumitomo Metal MiningBrass & Copper Co.,Ltd.

MESCO, Inc.

Chemical Products Division

Yoshinogawa Electric Wire& Cable Co.,Ltd.

We also retain a strong share of the domestic market forlead, which is used for lead piping, radiation shieldingmaterials and alloys, particularly for automotive andindustrial batteries. At Kamioka Mining & Smelting Co.,Ltd., one of our lead smelting facilities, in 1995 we tookthe pioneering move of switching raw materials fromconventional ore to recycled materials, chiefly usedbatteries.We established a system to recycle waste back intoresources at an early stage too. We recover gold, silver,platinum, palladium and other metals from items such asused electronic devices and electronic substrates. Wealso recover metals such as zinc and copper from generalwaste. We continue to develop essential technologies toenable us to preserve the environment and make moreeffective use of resources.

Copper is used for electrical wiring, and a whole host ofother electronic parts and processed products. PanPacific Copper Co., Ltd. established in 2000 as part of analliance between Mitsui Kinzoku and JX Nippon Mining &Metals Corporation. It operates a fully integrated systemcovering every aspect of copper, from procuring rawmaterials through to manufacturing and sales.

Safety, comfort and inspiration

Automotive partsWe have always developed a range of alloys, precisionprocessed components and functional parts in order toexpand the range of applications for non ferrousmaterials. We also supply products that offer added valueabove and beyond materials. That was where MitsuiKinzoku’s parts processing business started. We nowsupply an extensive array of functional parts that arecrucial for vehicles, home appliances and officeequipment.In particular, auto manufacturers all over the world havebeen using our door latches and other automotive partsfor half a century. We have a leading share of the globalmarket for side door latches. Having spun off ourautomotive parts business in 2010, Mitsui Kinzoku ACTCorporation is now responsible for handling automotiveparts. We have a network of manufacturing and supplyfacilities covering Japan, the US, Mexico, UK, China,Thailand, Indonesia and India. Combined with our effortsto improve quality assurance, research and developmentsystems, this has enabled us to establish ourselves as aglobal supplier of automotive parts.


Electronic control device

Copper and Brass sheet/strip

Plated strip

Copper alloy strip

ZAP tape/ZAP seal

Cable for robots

Electric wire

Polyethylene complex pipe

Lead shielding materials

Non-destructive inspection equipmentfor food

Perlite

Soil improvement materials

Perlite-based filter aid

Zinc oxide

Zinc sulfate

Lead oxide

Precision grinding wheels

Super abrasive wheels

Aluminum die-casting

Magnesium die-casting

Powder metallurgy

Metal injection molding

Plastic injection molding

Light-Weight Aggregate Non-destructive inspection equipmentfor fruits and vegetables



Corporate overview

2005-MITSUI KINZOKU COMPONENTS INDIABawal plantHaryana, India

2014-MITSUI KINZOKU COMPONENTS INDIASanand plantGujarat, India

2006-Mitsui Kinzoku Catalysts Zhuhai Co., Ltd.Guangdong, China

2012-MITSUI KINZOKU CATALYSTS JAKARTAWest Jawa, Indonesia

2013-Mitsui Kinzoku Catalysts (Thailand)Rayong, Thailand

2013-Mitsui Kinzoku Catalysts VietnamHanoi, Vietnam

2013-Mitsui Kinzoku Catalysts AmericaKentucky, U.S.Kamioka Plant

Hida city, Gifu, Japan

1980-Taiwan Copper FoilNantou County, Taiwan

1989-MITSUI COPPER FOIL MALAYSIASelangor, Malaysia

1992-Oak-Mitsui Camden State of South Carolina, U.S.

2003-Oak-Mitsui TechnologiesState of New York, U.S.

1998-Mitsui Copper Foil (Hong Kong)Kowloon, Hong Kong

1999-Mitsui Copper Foil (Suzhou) Juangsu, China

Ageo Copper Foil PlantAgeo city, Saitama, Japan

1976-Oak-MitsuiState of New York, U.S.

Global expansion of Mitsui Kinzoku Group’s key businesses (as of July 2018) The size of each circle stands for the number of personnel working at each site.

Catalysts

Copper foil

Sputtering targets

Automotive parts


Omuta plantOmuta City, Fukuoka, Japan

2005-Mitsui Kinzoku KoreaGyeonggi-do, Korea

2000-Mitsui Electronic MaterialsTaichung, Taiwan

MITSUI KINZOKU ACTYokohama city, Kanagawa,Japan

2012-Mitsui Kinzoku ACT (Shanghai) ManagementShanghai, China

1987-GECOMState of Indiana, U.S.

1995-MITSUI SIAM COMPONENTS Rayong, Thailand

1999-MITSUI COMPONENTS EUROPECarmarthenshire, U.K.

2002-Mitsui Components GuangdongGuangdong, China

1995-Henan Ohi Xing Guang Autoparts ManufacturingHenan, China

2000-Wuxi Dachong Industry Juangsu, China

2011-AUTOMOTIVE COMPONENTS TECHNOLOGY INDIATamil Nadu, India

2013-MITSUI KINZOKU ACT MEXICANAGuanajuato, Mexico

2013-MITSUI KINZOKU ACT INDONESIAJawa Barat, Indonesia



Comparative Table with GRI Standard




MITSUI KINZOKU

Mitsui Kinzoku CSR office1-11-1, Osaki, Shinagawa-ku, Tokyo 141-8584, JapanTelephone 81-3-5437-8028Facsimile 81-3-5437-8029e-mail [email protected]://www.mitsui-kinzoku.co.jp/


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